Barnes & Noble has introduced a new Nook Tablet that has 8GB of storage for $199. We briefly mentioned the new tablet yesterday and it is clearly aiming directly at Amazon Kindle Fire. The original Nook Tablet had 16GB of storage.

With the unveiling of the new 8GB Nook Tablet, the popular Nook Color gets a price reduction to $169.

The new, cheaper, Nook Tablet retains 512MB of RAM and includes a 1GHz dual core processor. Barnes & Noble promises 11 1/2 hours of reading time or nine hours of video viewing. The tablet also has an integrated microSD card slot for additional storage space. Wi-Fi is integrated and the screen is a VividView seven-inch unit with 16 million colors.

“For any customer who likes to read digitally, watch movies or TV shows, browse the web, or help their kids read and learn through interactive books and apps, our new $199 NOOK Tablet with 8GB is the best product value on the market,” said William Lynch, Chief Executive Office of Barnes & Noble.

“NOOK Tablet is the highest-rated wireless media tablet in the 7-inch class, ultra-portable at under a pound, offers our exclusive VividView™ screen technology, and since its introduction this holiday has received rave reviews from customers about all its great features. We’re pleased to now offer customers the ability to experience NOOK Tablet’s unmatched content experience for only $199.”

The tablet will have the same access to content and books as the original Nook Tablet.